Instead of defaulting a long time ago (when we first suggested it should) when it could have pulled an Iceland, taken a bitter pill, hyperinflated the drachma and in the process delevered overnight, if at a big social cost of losing its welfare safety net (which it is about to lose anyway courtesy of the PSI and OSI), and not be held captive to bigger geopolitical interests, and hostage to the banker superclass, Greece very likely could have been on the road to recovery now, granted with a totally different political regime. Instead, the political regime is the same, Greece is more in debt than ever before, the economy is in shambles, the banks have seen two straight years of bank runs, and most importantly the people now are poorer and more disenchanted than ever, and as the following story indicates, about to get far angrier than any Syntagma square riot cam (which is about to come back with a PayPerView vengeance) has shown to date. According to Kathimerini, late on Saturday evening, "A group of between 30 and 50 youngsters attacked the house of President Karolos Papoulias."

"The result of the attack was some minor damage to the entrance of the house at Asklipiou Street in central Athens and to the car that Papoulias uses. The hooded youngsters, who arrived by motorbike and on foot just after 8 p.m, hurled a Molotov cocktail, rocks and paint at the house but stopped short of attacking the two guards at the President’s house. Papoulias was inside at the time of the attack. Police is searching for those responsible for the unexpected attack." And while the fact that discontented Greeks are willing to attack the most porminent political figure is in itself not shocking, the fact that it is being publicly announced is quite disturbing, as it opens up the population to the realization that one can express anger and hostility at one's rulers - an oppressive regime that has been benefitting the banking oligarchical superclass at the expense of the general population. Consider it yet another "Sparatcus" moment. How many more of these before the Athens parliament is overrun? Or how much longer before the people realize they have notthing to lose?

Yes, you were irresponsible, and you consumed more than you produced, and you ate up all the easy credit you could order and then some, but that doesn't change the fact that so long as your lives and economy are set within the context of fractional reserve banking voodoo, and a framework where you can't even print your own currency, instead having to beg, borrow or whore yourself out to a loanshark and pimp to obtain necessities of life, or what is now your reality - as long as your lives and economy are set in the framework of fractional reserve banking - you will only fall deeper into debt serfdom and lose more and more of what you had assumed were your sovereign properties & wealth.

What I'm saying, Greece, in case you're listening, is that on relativistic scale, your sins of overconsumption and borrowing too much, particularly since you were "allowed into" the European Union, pales in comparison to those of the criminal racketeering organization that is called fractional reserve banking in dignified social settings.

p.s. - Don't let the Paul Krugmans of the world tell you that ya' can't default because the repercussions will be unbearable. Just the opposite is your new reality. Never go into business with an entity or person who will forever and always inherently be able to subjugate you and bend you to their will. You gave up your sovereign right to print your own currency. It's time to rectify that egregious error (just make sure your new money is directly tied to an inherently valuable asset, in order to build an automatic safeguard against the inflation-deflation, rinse, wash and repeat racketeers of finance from robbing you blind in other ways).

Paul Krugman would have you debase your living standards by 95%, pay a 90% income tax, and pay for the privilege of breathing (with all revenue generated going to some non-benevolent world body), and have the balls to tell you it's for your own good.

Double p.s. - Krugman would love to see Keyne's wet dream of a single world currency (the 'bancor' or whatever it's ultimately called) come into fruition in his lifetime, too.

The kids don't realize that one man cannot fix this situation. L-Pap took over the helm of the monster that was already created long ago. G-Pap stepped down because the mess was too much for him to deal with. The system is broke and no matter who steps in to the lead role...they have no control. Just political chatter.....nothing more. Same with Monti in Italy. He stepped into a mess as well. He may get the same treatment as Berlusconi at some point. It's all part of the plan of the powers that be working with their pawns in place to destroy patriotism and sovereignty to move towards global control. Create so much chaos that the people willingly give up nationalism for peace and order. That is the evil empire that needs to be exposed and brought down. And it will be brought down under God's judgement. The day of reckoning is coming friends. Unfortunately a lot of turmoil and destruction is yet to come for a little while longer. God promises to save those who call on him....the bible says to: "Call on the Lord while we still have the chance....while He may be found". Because the mark of the beast system is being implemented and the deception of the devil is already working on the people's minds in this world. Jesus Christ is the only answer and whoever calls on him will be saved. This is where the rubber meets the road folks. Never mind religion .... just reality....knowing God through a personal relationship with Jesus is what matters. A new world of unbelievable beauty, peace, love, joy, happiness, fullfillment and prosperity awaits those who belong to Him! I really felt this needed to be stated.

You do not get it. We fail all the time; and if we think we don't, that is worse. That is the whole point. Please learn the basics of Christianity. Please. You will awaken to a somewhat fearful existence but you will have an eternal chance. There is no easy road. You and I are not worthy of God's grace. That is the point.

Everyone woulld agree (vote for it) that it would be great to retire at 55 years old. Problem is there must be a way to pay for it. Greece may have taken more advantage of the promises but the whole world was lied to by the banks, corporations and gov. The politicians got elected, the corporations got their advantages, and the banks put everyone in debt. Now the producers (young workers) must pay for it all for those who voted themselves privileges they dont deserve. Damn right they are throwing rocks. This is a class war and those who think they are imune because they aligned themselves with the powerful with their silver spoons or education are about to get a real dose of reality.

"The US very likely could have been on the road to recovery now, granted with a totally different political regime. Instead, the political regime is the same, the US is more in debt than ever before, the economy is in shambles, the banks have seen two straight years of mini runs and endless funding, and most importantly the people now are poorer and more disenchanted than ever, and as the following story indicates, about to get far angrier"

Step 1: Directs the Treasury Department to issue U.S. Notes (like Lincoln’s Greenbacks; can also be in electronic deposit format) to pay off the National debt.

Step 2: Increases the reserve ratio private banks are required to maintain from 10% to 100%, thereby terminating their ability to create money, while simultaneously absorbing the funds created to retire the national debt.

We could use those pallets of US notes JFK was ready to distribute until the Fed had him shot. I still have some old US Notes of the $2 variety floating around here somewhere. I think maybe the stooge Johnson had them burned though, by order of the Fed.

Is it because you think it's unreasonable or somehow illogical, or because there's a stealthy, stranglehold force on the American Government (that works for the citizenry, allegedly), that is powerful enough to never allow this to be implemented?

I think the LOL comes from the fact that the debt is odious and hence is not owed. Let's also not forget how much interest has already been paid over the last 99 years...

Perhaps the LOL comes from the fact that there are 100's of trillions of public and private debt (+ coming exponential growth of said debt over the next few years), where much the private debt will effectively become public (we always bail 'em out). Do you have any idea about the size of the debt you are cavalierly suggesting we pay back?

=> you might be OK with spending decades paying off this odious debt, but personally I categorically refuse, even though I know that will affect everyone's paper/figurative 'wealth'.

He is suggesting that the U.S. print its own currency again, not Federal Reserve Notes, with said greenbacks having no borrowing-interest cost component baked into them, and retiring the alleged debt by paying it off with said greenbacks.

Hence, I think that you, I and Friedman are of the same sentiment and desire on this point.

*This would have the secondary, highly positive affect of rendering The Federal Reserve a vestigial organ, thus also rendering it moot/dead/defunct.

Let's indulge in the fantasy of paying off the national debt. How long before the broken fundamentals of too much Govt. to many wars, too many entitlements, put us right back in the same situation? We have a fundamental problem which is why funadamentally Gold and Silver work. We are past these fantasy games. The shit will hit the fan at some TBD future tipping point.

Paying off the debt isn't the end goal (it's a mere symbolic step to emphasize the point that those formerly in charge of U.S. monetary policy and the drivers of the massive & unsustainable credit/debt issuances (leveraged) necessarily now driving U.S. GDP growth (nominal growth), are no longer behind the wheel of policy).

Getting rid of an unsound & perverse monetary system whereby the boom-bust cycle is not only allowed to be a frequent destroyer of economic worlds, but is encouraged to be so, with all the massive malinvestment, inefficiency, bubbles & damaging long-term consequences to the economy, would be the end goal.

"Yes, you were irresponsible, and you consumed more than you produced, and you ate up all the easy credit you could order and then some"

You're talking to Greek politicians, who are corrupt, and who played this fractional/derivative game up until now when

they can easily see that they'll soon get lynched. All Greeks saw some benefit from the trickle down, but you're not talking to the people

with that comment. You should talk to the people too. You need proof? Look at the level of personal/family debt. It's probably the lowest in the Western world. The banking laws there are scary. They can soak you for everything you've got if you miss one payment. Therefore, most people don't have loans.

2

"go Icelandic"

Lovely concept. However, you can see the legal/political leg-lock that the Troika has put Greece in. Greece has already lost its sovereignty. The Mnimonio is the official end of a free Greece. I don't know if they'll ever let Greece truly free.

The fact that the whole world knows that

1 it's better to give Greece a 100% haircut

2 the whole EU government works for the German and US/UK banks, and Timmie is their leader

because of the work of ZH and others like Max Keiser.

That doesn't mean that Greece will go free.

Anyway, watch what Greece is doing, and learn because they'll come for your country too.

I gave you a thumbs up, because the first part is spot on. The second part, Krugman, however, is not correct. Krugman, although he does seem to believe in currency debasement, has long been talking about Iceland as the example to follow.

People are so crazy these days, throwing rocks and burning things. My my my. This world needs to SIMMA DAHN NAH before we have unemployed people burning down political offices. Or cultivating viruses in crazy home labs and spreading them on the doors of 200 West. Or leaving backdoor infested USB drives in the parking lots of such places, or the driveways of the employees of such places.

I mean, think of the loss of social cohesion that would occur if someone working for a catering company realized that big order he or she is slaving away to make for $7/hr is going to the Wall Street bonus party, and decides to poison the whole of it.

Shit, the way the people at the top go through blow, some loon might get the idea to sell laced coke all through midtown. Or a few ladies with AIDS decide to get together and satiate the appetite of those hopped up nose candy addicts.